Question
icians forecast the sales of Spruce Juice as follows: Q = 2,000 - 2,400P + 3I + 300P W , where Q = sales of
icians forecast the sales of Spruce Juice as follows: Q = 2,000 - 2,400P + 3I + 300PW, where Q = sales of bottles of Spruce Juice, P = price of Spruce Juice, I = average monthly consumer disposable income, and PW= the price of a bottle of Woktail, a competing drink. We also have the following data: P = 4, I = 2,000, PW= 8. Is Spruce Juice a normal or inferior good?
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Microeconomics
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson
2nd edition
1464187029, 978-1464189104, 1464189102, 978-0716759751, 716759756, 978-1464187025
